On February 9 the American International Group (AIG) apologized for misleading business practices over the last two decades and agreed to pay $1.64 billion to settle investigations by federal and state securities and insurance regulators.  AIG also agreed to make changes so that its operations would not be as aggressively competitive as under the leadership of former chief executive Maurice Greenberg.  In its settlement with the Justice Department, the Securities and Exchange Commission, and the offices of the New York attorney general and insurance department, AIG acknowledged that the company had misled investors and regulators.  The agreement settles allegations about AIG’s participation in the manipulation of the bidding process used by brokers to award insurance business, allegations about the use of fraudulent insurance transactions to improve the appearance of its earnings reports and allegations that the company underreported the workers comp premiums it collected.

February 14, 2006